WEDNESDAY, OCTOBER 5, 2011

REGULAR MEETING

7:00 P.M.

1. ROLL CALL. Mr. Sauer called the meeting to order at 7:00 P.M., with roll call as follows: Mrs. Sanders, Mr. Blair, Mr. Sauer, Mrs. Hammond, Mr. Barletta, and Mr. Wisniewski were present. Mr. Fix arrived at 7:25 P.M. Others present were Bill Vance, Lynda Yartin, Chris Schornack, Ed Drobina, Greg Bachman, Lynn Miller, Mike Sabatino, Chris Schweitzer, Melanie Wollenberg, and others.

2. APPROVAL OF MINUTES OF September 20, 2011, Special Meeting. Mr. Blair moved to approve; Mrs. Hammond seconded the motion. Roll call was taken with Mr. Barletta, Mrs. Hammond, Mr. Wisniewski, Mr. Blair, Mr. Sauer, and Mrs. Sanders voting “Yes.” Motion passed, 6-0.

3. FINANCE DEPARTMENT.

A. Finance Director’s Report. Mr. Schornack stated he had provided a written report and would be happy to answer any questions anyone might have.

(1) Discussion regarding CMI system upgrade. Mr. Schornack stated he was looking for some type of possible commitment from this Committee on a CMI software package that is coming out soon. He stated this package would help efficiency and productivity as related to Finance. Mr. Schornack stated one of the items would allow us to send reports via e-mail and Council would be able to look into the detail of all the transactions or whatever you would need to do. Mr. Schornack stated although we are not in the budget session yet, if we can do some kind of commitment they are offering a 60 percent implementation discount to be an early implementer of the product. Mr. Fix clarified this was the same system we now have, just upgraded software. Mr. Blair ascertained the total cost of the program would be $99,709. Mr. Schornack stated the package does include the Authority Utility and for that we would utilize utility funds, it would include DocuScan. Mr. Schornack stated the General Fund would have to absorb roughly $38,000 of the total cost of the upgrade and we generally include approximately $30,000 for computer upgrades. Mr. Blair further clarified we currently pay an annual fee of $5,750 for the Authority Finance and it would be slightly higher with this new program. Mr. Wisniewski stated his concern was that we would be buying more advanced software and we do not have anyone to administer it. He further stated he did not feel this represented the entire cost we would incur by upgrading. Mr. Wisniewski stated he would not have a problem with having one of the CMI people come to the next Finance meeting would be very beneficial. Mr. Wisniewski stated he also felt this could also be made a budget item for the budget discussions. Mr. Sauer stated he would like to have this continued on the agenda for the next meeting.

B. Review and request for motion to approve draft ordinance amending the 2011 appropriation, Ordinance 2010-91. Mr. Schornack reviewed the appropriations on the draft ordinance and stated he would answer any questions anyone might have. Mr. Sauer moved to approve and forward to Council; Mr. Wisniewski seconded the motion. Roll call was taken with Mr. Wisniewski, Mr. Sauer, Mrs. Hammond, Mr. Blair, Mrs. Sanders, and Mr. Barletta voting “Yes.” Motion passed, 6-0.

C. Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a three-year contract with the Local Government Services Division of the Office of the Auditor of State to assist the City in preparing General Purpose Financial Statements and the Comprehensive Annual Financial Report (CAFR). Mr. Schornack stated we have started doing the CAFR in-house, however, when we implement new implementation standards we need guidance so we want someone to review our report. He further stated he does not anticipate using the entire $10,000 each year. Mr. Wisniewski moved to approve; Mr. Blair seconded the motion. Roll call was taken with Mr. Barletta, Mr. Sauer, Mr. Blair, Mrs. Hammond, Mr. Wisniewski, and Mrs. Sanders voting “Yes.” Motion passed, 6-0.

D. Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a lease agreement with Verizon Wireless for a wireless tower on the Refugee Road Water Tower. Mr. Vance stated Mr. Bachman, Mr. Schornack, and our law director were instrumental in negotiating this contract. He stated it is a five-year contract with an opportunity to extend it by five years and the annual compensation to the City is approximately $25,000. Mr. Wisniewski clarified this would not prevent us from entering into agreements with any other wireless companies on the water tower. Mr. Blair moved to approve and forward to Council; Mr. Wisniewski seconded the motion. Roll call was taken with Mrs. Sanders, Mr. Blair, Mrs. Hammond, Mr. Sauer, Mr. Barletta, and Mr. Wisniewski voting “Yes.” Motion passed, 6-0.

E. Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a health services agreement with Franklin County Board of Health for 2012. Mr. Vance stated the agreement is essentially the same agreement we have been operating under, however, the cost was increased based upon an increase in population. Mr. Wisniewski clarified the cost last year was approximately $81,000, so it is a substantial increase. Mr. Schornack stated our last contract was based on the 2000 population and this is based on the new census data. Mr. Wisniewski moved to approve and forward to Council; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Sanders, Mr. Sauer, Mr. Blair, Mr. Wisniewski, Mr. Barletta, and Mrs. Hammond voting “Yes.” Motion passed, 6-0.

F. Review and discussion regarding Performance Bonds versus Liability Insurance. Mr. Schornack stated this is minor as far as cost goes; the new policy covers first dollar and it is $2,000 for all employees to be covered under this compared to the $1,450 we spend annually to get bonds on the 14 or so people listed in the Administrative Code that are required to be bonded. Mr. Schornack stated this covers all employees for the first dollar. Mr. Schornack stated this came out of the Grove City problem with the IRS and our CORMA insurance recommended we move to this type of bond. Mr. Schornack stated if the Committee approved we would have the formal legislation prepared to amend the Code. Mr. Blair moved to approve; Mr. Wisniewski seconded the motion. Roll call was taken with Mr. Barletta, Mrs. Hammond, Mr. Sauer, Mr. Blair, Mr. Wisniewski, Mrs. Sanders, and Mr. Fix voting “Yes.” Motion passed, 7-0.

G. Review and request for motion to approve draft ordinance authorizing the City Manager to execute an agreement with Ice Miller LLP (FKA Schottenstein, Zox & Dunn Co., L.P.A.) for legal services. Mr. Sauer stated Mr. Sabatino had requested the opportunity to speak on this issue.

Mr. Sabatino stated he would like to compliment Council, the City Manager, and staff for doing an excellent job in turning over the rocks and trying to find all the dollars there are to save. He stated one thing the City has not looked at yet is if we are getting the best bang for our buck with the law director and he would ask the Committee to consider this evening that instead of doing a two year contract do a one year contract, and then next year they could look at something like we did in 2005 when we hired a consultant to do a search for a law director. He stated it may be we are getting a good deal, but he felt we owed it to the citizens to make sure that we are spending the city’s dollars cost effectively.

Mr. Wisniewski stated he would prefer to leave the contract as it is because it gives us a 30-day clause at any point and this locks us in to this rate for two years if we choose to stay with them. He stated there is nothing to prevent Council from looking at another law firm in a year, but this give us the option to keep the current rate for two years if we so choose. Mr. Sauer stated he agreed with Mr. Wisniewski as the 30-day clause does allow us to review it and look at it if we choose. Mr. Wisniewski moved to approve and forward to Council; Mr. Blair seconded the motion. Roll call was taken with Mrs. Sanders, Mr. Fix, Mr. Blair, Mr. Sauer, Mrs. Hammond, Mr. Barletta, and Mr. Wisniewski voting “Yes.” Motion passed, 7-0.

4. CHAIRMAN:

A. 2012 Budget Issues/Concerns.

(1) Review and discussion regarding 2012 Budget timeline. Mr. Sauer stated the timeline was included in the packet and the first budget work session is scheduled for Wednesday, October 12, 2011, at 6:00 P.M. Mr. Sauer stated this could be removed from the agenda.

(2) Revenue Enhancement Timeline - Update. Mr. Sauer stated the information regarding the Police Department Audit should be coming soon and that will lead into the budget discussions. Mr. Sauer stated he felt this could be removed from the agenda.

B. Strategic Goals – Update. Mr. Sauer stated he had no update.

5. OTHER BUSINESS:

A. Discussion regarding Equity’s request for amendment to Guaranteed Maximum Amount Construction Contract for the extension of Stonecreek Drive in the City. Mr. Sauer stated Melanie Wollenberg of Equity is present to address the Committee on this issue. Ms Wollenberg stated she had written to ask for consideration of an extension of the build requirements under the TIF. Ms Wollenberg stated they have owned this land since 2006, and they do have several prospects right now, two of which they are exchanging contracts with. She stated she is very hopeful those will come to fruition, but she would like to ensure that they continue to receive the TIF payments as they work hard to get these deals done. Mr. Fix stated he wanted to make sure everyone knew what they were agreeing to if they agreed to anything tonight; and, that is that the City not force them to build office space they have not yet leased and that we continue the TIF payments so they can continue to pay down the debt they have incurred to build what they have built. Ms Wollenberg stated that was correct. Mr. Fix inquired what the consequences would be if they chose not to do this. Mr. Vance stated if we work with Equity, within this extension they have additional resources to hopefully maintain the infrastructure that is existing in a responsible fashion and also work towards the promotion of the development so it can be built out. Mr. Vance stated if we do not make the TIF payment, the funds are put into a dedicated fund and once the requirements associated with the TIF are met by the developer they get access to those funds. He stated in the meantime, no-one has access to those funds. Ms Wollenberg stated Equity has made investment in this site beyond the $2 million in the TIF; they have made investment in soils, utilities, and getting the site ready for development. Mr. Wisniewski clarified the Ohio Health offices were just moving from one part of the City to another. Ms Wollenberg stated that is correct, they moved across the street, but they have expanded and added physicians. Ms Wollenberg stated this was almost a new build but because of their time constraints they decided to go into the existing space. Mr. Wisniewski stated then Equity was not asking for a modification to the contract except for an extension on the build times. Ms Wollenberg stated they were requesting to amend the build requirement to provide for a minimum of 8,000 square feet of new space built by January 31, 2013; aggregate minimum of 16,000 square feet space built by January 31, 2015; and, aggregate minimum of 24,000 square feet space built by January 31, 2016. Mr. Wisniewski clarified the TIF agreement was entered into in early summer of 2006, and they did receive an extension a couple of years ago. Mr. Wisniewski further clarified the TIF amount is approximately $74,000. Mr. Wisniewski stated he did not have a problem with the extension as long as there is no benefit or detriment to the City in any way and as long as we are not modifying the contract to change what the agreement was. Mr. Fix further clarified the TIF monies go into the TIF Fund to pay down the debt service and Equity is the debt service to us. Mr. Fix stated he felt we should give them the opportunity to try to market the space. Mr. Wisniewski clarified that the final legislation would be prepared and would come back to this Committee for final review. Mr. Sauer stated that was correct and he would request this be added to the next agenda.

B. Review and discussion regarding increase in storm water utility rate. Mr. Vance stated the Committee had received a memorandum recommending the increase of $.25 per month per year per Equivalent Residential Unit (ERU) as indicated in the memorandum. Mr. Vance stated if we are to incorporate additional storm water improvement projects to deal with these situations we need additional resources. Mr. Bachman stated we do have some situations that he would classify as serious and to handle those it will take additional funding. Mr. Sauer clarified that the $.25 increase will give us the ability to keep up with our current CIP and give us the flexibility to be able to handle some other items. Mrs. Hammond clarified that this would be about a six percent increase for everyone, both residential and commercial. Mr. Blair further clarified this fee was initially increased from $1.50 to $3.00 per month and last year it was increased to $4.00. Mr. Fix moved to approve the recommended increase and forward the legislation to Council; Mr. Sauer seconded the motion. Roll call was taken with Mr. Blair, Mrs. Hammond, and Mr. Wisniewski voting “No,” and Mr. Barletta, Mr. Fix, Mr. Sauer, and Mrs. Sanders voting “Yes.” Motion passed, 4-3.

6. MOTIONS:

A. Motion for Executive Session under Section 121.22(G)(1)b, Matters involving an employee’s or public official’s employment, Section 121.22(G)(2), Purchase or sale of public property, Section 121.22(G)(3), Conference with law director regarding pending or imminent court action, and Section 121.22(G)(4), Matters involving bargaining sessions with public employees. Mr. Sauer stated an Executive Session was not necessary this evening.

7. ADJOURNMENT. There being nothing further, Mr. Fix moved to adjourn; Mrs. Hammond seconded the motion. Mr. Wisniewski, Mr. Sauer, Mrs. Hammond, Mr. Blair, Mr. Fix, Mrs. Sanders, and Mr. Barletta voted "Aye." Motion carried, 7-0. The Finance Committee adjourned at 7:45 P.M., October 5, 2011.

RESPECTFULLY SUBMITTED:

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Lynda D. Yartin, City Clerk